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Addressing Counterfeit Threats in Air Force Supply Chains: Current Investigative Trends

Join SA James P. Stoddard at the National Contract Management Association Symposium as he discusses the alarming prevalence of counterfeit microchips and parts impacting the U.S. Air Force. This session will cover the AFOSI's mission to combat criminal threats, emphasizing the significance of vigilance in supply chains. Learn about the challenges posed by counterfeit products from global origins and the strategies contracting professionals can employ to detect and deter fraud. Discover how your actions can protect national security and ensure mission readiness.

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Addressing Counterfeit Threats in Air Force Supply Chains: Current Investigative Trends

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Presentation Transcript

  1. National Contract Management Association Symposium Current Investigative Trends SA James P. Stoddard 30 March 10

  2. Introduction • AFOSI Mission • Current Investigative Trends • Your Response

  3. AFOSI Mission & Priorities • Mission • To Identify, exploit and neutralize criminal, terrorist and intelligence threats to the Air Force, Department of Defense and U.S. Government. • Priorities  • Identify and resolve crime that threatens Air Force readiness or good order and discipline • Combat threats to information systems and technologies • Detect and defeat fraud impacting force acquisitions and base-level capabilities • Yes, we are kind of like that show NCIS…

  4. Current Investigative Trends • Counterfeit Microchips • Origins in China, India, Russia, Middle East, and Southeast Asia • Harvesting of Chips • Re-selling to Market (Disadvantaged businesses) • Purchase by Contractors/Sub-Contractors • Installation in USAF Weapon Systems • Results • System Failure • Espionage “What we have here is a pollution of the military supply system”

  5. The Counterfeit Process

  6. Current Investigative Trends • Counterfeit Parts • Small Machine Shops • Reverse Engineered Parts • Re-selling to Government on Surplus Market • Purchase by Contractors/Sub-Contractors • Installation in USAF Weapon Systems • Results • System Failure • Degraded System Life “Counterfeit products have been linked to the crash of mission-critical networks...”

  7. A Contract Management Response • Air Force Contracting Guiding Principals • Do the Right Thing • Ask questions… be alert… • Integrity • If it doesn’t seem right, it probably isn’t. • Focus on the Details • Inspect your product, don’t just take things for face value • Investigate your contractor or supplier • Share Knowledge & Experience • Report your suspicions, fears and concerns • Investigative agencies need to investigate • Protect our Nation, Air Force & Contracting Profession • It could save someone’s life and it’s your money too!

  8. Thank You! SA James P. Stoddard AFOSI Det 114, Fraud Division (405) 736-5717

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